U.S. Copper Demand Sparks Opportunity for Ivanhoe Electric

The United States has a persistent issue with copper. Simply put, the nation consumes a vast quantity, yet local mining capacities aren’t sufficient to meet the growing needs. Ivanhoe Electric has been striving to become the first U.S.-based company to establish a domestic copper operation for over a decade. I mean, when I recently captured a picture of the soaring copper prices, it felt like the moment couldn’t have been more timely—or maybe not?

President Donald Trump took a significant step by issuing an executive order to include copper in a list of essential minerals. On July 8, he also announced a hefty 50% tariff on imported copper, effective August 1.

Currently, the U.S. produces about half of the copper it requires, placing it fifth globally—behind Chile, the Democratic Republic of the Congo, Peru, and China. One key factor is the lengthy process; on average, it takes around 29 years for a copper mine to commence production due to extensive permitting and approval procedures.

Rapid Progress at Santa Cruz

In light of this, Ivanhoe Electric’s Santa Cruz project, located about 40 miles south of Phoenix in Casa Grande, Arizona, is set to begin operations by 2028—just eight years since the project’s inception. Taylor Melvin, the company’s CEO, described the current mining conditions as incredibly efficient for this timeline. “One of our significant advantages is that we’re on private land, which streamlines the whole permitting process,” he explained.

The company is actively collecting core samples from a sprawling 6,000 acres to determine optimal mining locations. This underground mine is expected to yield around 3 billion pounds of copper over a 23-year span, potentially positioning it among the top five or six copper mines in the U.S.

Embracing Innovation

Another benefit of this mining operation is the method used for copper extraction. With only two copper smelters in the country, most mined copper is shipped overseas for processing. However, at Santa Cruz, Ivanhoe Electric employs leaching to extract the metal, optimizing for the ore’s unique properties found onsite.

“We produce pure copper ready for U.S. consumers,” Melvin asserted. And the need is rising. According to the International Energy Agency, global copper demand was around 26 million tonnes in 2024 and is projected to reach approximately 40 million tonnes by 2050.

Yet, a looming issue casts a shadow. Many existing mines are expected to deplete by then, leading to a potential production decline unless new operations like Santa Cruz come online.

“Copper is vital for every aspect of our economy,” Melvin remarked. “From expanding the electrical grid to supporting technological advancements like AI data centers. The defense sector also relies on copper heavily.” The significance of copper in our daily lives is hard to overstate.

Local Impact and Employment Opportunities

This landscape positions Ivanhoe Electric and similar companies favorably. The Santa Cruz project is projected to create about 900 full-time jobs during construction, which will taper to around 600 during the mining phase. Many of these positions offer competitive wages and job security for the next 25 years.

And there appears to be optimism among mining companies, especially with Trump advocating for copper to be officially designated as a crucial mineral. Melvin expressed, “In our 25 years in the copper mining sector, we’ve never experienced such a supportive atmosphere for domestic mining.” Timing, it seems, could not be better for Ivanhoe Electric’s endeavor.